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Published online by Cambridge University Press: 07 May 2025
The New York Times on October 12, 2006 featured an article describing fierce opposition by some US investors and employers in China to modest improvements to Chinese labor legislation. I have just visited China with labor lawyers and industrial relations experts who have worked to advance these proposed changes in China's employment law. The labor law reformers paint a vivid picture of the imbalance to the detriment of workers in Chinese industrial relations and the resulting abuses of employees, and of the urgent need to redress this imbalance if China's social and investment environment is to remain stable.
[1] A recent ILO study shows that 50% to 80% of employers in Guangdong cities illegally retain wages. This practice is so prevalent it is justified as “local custom.” Greenfield and Pringle, “The Challenge of Wage Arrears in China” in Valesco (ed), Paying Attention to Wages (2002). According to one ACFTU survey, only 15.8% of private enterprises comply with working hour regulations. Most workers, according to this study, work a 50-hour week. See.
[2] American Chamber of Commerce, People's Republic of China, “Comments on Draft Labor Contract Law submitted to the Standing Committee of the National People's Congress, Law Committee, Financial and Economic Affairs Committee, Legislative Affairs Commission,” April 19, 2006 (on file with author).
[3] In this respect, Chinese courts show the same “spirit of mutilating narrowness” in construing worker rights that Justice Felix Frankfurter discerned and condemned in US courts. See, e.g., U.S. v. Hutcheson, 312 US 219, (1941).